9911796707
TMI Blog1993 (2) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the Tribunal was right in holding that the applicant was not entitled to higher development rebate at the rate of 25 per cent. ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that no appeal lies to the Appellate Assistant Commissioner from the order of the Income-tax Officer levying interest of Rs. 4,511 under section 139 of the Income-tax Act, 1961 ? (4) Whether, on the facts and in the circumstances of the case, the Tribunal was right in confirming the order of the Appellate Assistant Commissioner rejecting the claim of the assessee for allowance of surtax?" At the time of hearing of this reference, learned counsel appearing for the assessee stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessories and it was sufficient for the assessee to show that they could be termed as textile accessories. The Tribunal rejected the plea of the assessee on the ground that a humidifier is machinery by itself and, therefore, not an accessory. It further held that a humidifier would become part of textile machinery only when it is purchased by textile mills and set up in textile plants. To that extent, the appeal of the assessee was dismissed though it was partly allowed on the other point. What is contended by learned counsel for the assessee is that the Tribunal has recorded an inconsistent finding and was not justified in holding that humidifiers manufactured by the assessee were not textile machinery or textile accessories. He drew our ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a matter of fact, found that humidifiers are mainly used for manufacture of cloth. If that is so, humidifiers should be regarded as textile machinery. What the Tribunal has held is that humidifiers in the hands of textile mills are textile machinery but they cannot be regarded as such in the hands of the assessee. It is difficult to appreciate this reasoning of the Tribunal. If humidifiers are textile machinery on the ground that they are mainly used in the manufacture of cloth, we fail to appreciate how they cease to be such articles in the hands of the assessee. For being a manufacturer of textile machinery, one need not be a manufacturer of textiles. The material on record also discloses that 96 per cent. of the assessee's sales are t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rts and other spares and attachments are regarded as textile accessories. He submitted that only such articles should be regarded as textile accessories and not humidifiers which are not attached to the textile plant and which do not play a direct role in the manufacture of textiles. As we have pointed out above, the Tribunal has held that humidifiers are "textile machinery" though it has further held that they were so in the hands of the textile mills and not in the hands of the assessee. We have held earlier that there was no justification for drawing a distinction like this in view of the further finding recorded by the Tribunal. It will have to be held that the Tribunal was wrong in holding that humidifiers manufactured by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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